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How to keep a low debt level

Having no debt at all is the utopia we all look for, but there are simple steps everyone can take to reach it

Having personal debts is not the end of the world; actually, few people don't owe anything to a bank or financial institution. But the worst aspect of being indebted is that things can easily fall out of control, as debts tend to grow in time and people tend to forget that. Here are the things you have to take into consideration if you aim for a low debt level:

Always keep track of your finances. The first step to having a low debt level is to know exactly how much you owe and how much you earn;

Don’t take on a large mortgage, as this is one of the fastest ways to increase your debt level. Don't fall for into traps set by real-estate agencies which want to offer you a house that you can't very well afford;

Strive to reduce your debts; don't just let it accumulate thinking that you can always postpone paying it. Although it's true that you can do that, you don't want to put yourself in a very tough future position;

try to avoid credit lines if possible, as it only replaces your debts with another debt;

try to only take debts that you know you can easily repay;

Make purchases with cash rather than credit. It's the best way to make sure that you don't overstretch and also avoid the trap of buying now and paying later;

Of course, the easiest way to have a low debt level is not to take on large loans, but that is often not a viable option for most of the people out there. This is why you need to stick to the tips that we outlined as much as you can.